The Iron Horse

by R. M. Ballantyne

Now, if all this be unavoidable even in the case of a single fare, or a small parcel, it must be self-evident that in lines where the interchange of through-traffic is great and constant, it would have been all but impossible for the railway companies to manage their business, and the system would have given rise to endless disputes.

In order to settle accounts of this description, it was soon seen to be absolutely necessary that some sort of arrangement must be come to, and, accordingly, the idea of a central office was conceived, and a system established without delay, which, for minute detail and comprehensive grasp, is unrivalled by any other institution. At first only a few of the railway companies united in establishing the Clearing-House in 1842, but by degrees, as its immense value became known, other companies joined, and it now embraces all the leading companies in the kingdom. It is said to be not inferior to the War Office, Colonial Office, and Admiralty in regard to the amount of work it gets through in a year! Its accounts amount to some twelve millions sterling, yet they always must, and do, balance to a fraction of a farthing. There must never be a surplus, and never a deficiency, in its funds, for it can make no profits, being simply a thoroughly honest and disinterested and perfectly correct go-between, which adjusts the mutual obligations of railways in a quick and economical manner. Its accounts are balanced every month, and every pound, shilling, and penny can be accounted for. It annually receives and dispenses a revenue greater than that of many European kingdoms. In 1847 its gross receipts were only 793,701 pounds. In 1868 they had risen to above eleven millions.

Each line connected with the Clearing-House has a representative on the committee to look after its interests, and bears its proportion of the expenses of the establishment.

Before showing the manner in which the work is performed for the railway companies, it may be well to premise that one great good which the Clearing-House system does to the public, is to enable them to travel everywhere with as much facility as if there were only one railway and one company in the kingdom.

To avoid going too much into detail, we may say, briefly, that in regard to goods, statements of through-traffic despatched are sent daily from thousands of stations to the Clearing-House, also separate statements of through-traffic received. These are compared. Of those that are found to agree, each company is debited or credited, as the case may be, with the proportion due to or by it. Where discrepancies occur, correspondence ensues until the thing is cleared up, and then the distribution to the accounts of the several companies takes place. As discrepancies are numerous and constant, correspondence is necessarily great. So minutely correct and particular are they at the Clearing-House, that a shilling is sometimes divided between four companies. Even a penny is deemed worthy of being debited to one company and credited to another!

As it is with goods, so is it with passengers. Through-tickets are sent from all the stations to the Clearing-House, where they are examined and compared with the returns of the tickets issued, and then sent back to their respective companies. As these tickets amount to many thousands a day, some idea may be formed of the amount of labour bestowed on the examination of them. The proportions of each ticket due to each company are then credited, and statements of the same made out and forwarded to the several companies daily. From the two sets of returns forwarded to the Clearing-House, statements of the debit and credit balances are made out weekly.

Parcels are treated much in the same way as the goods.

“Mileage” is a branch of the service which requires a separate staff of men. There are hundreds of thousands of waggons, loaded and empty, constantly running to and fro, day and night, on various lines, to which they do not belong. Each individual waggon must be traced and accounted for to the Clearing-House, from its start to its arrival and back again; and not only waggons, but even the individual tarpaulins that cover them are watched and noted in this way, in order that the various companies over whose lines they pass may get their due, and that the companies owning them may get their demurrage if they be improperly detained on the way. For this purpose, at every point where separate railways join, there are stationed men in the pay of the Clearing-House, whose duty it is to take the numbers of all passenger carriages and goods, waggons and tarpaulins, and make a daily statement of the same to the Clearing-House.

As daily returns of all “foreign” carriages arriving and departing from all Clearing-House stations are forwarded to the same office, they are thus in a position to check the traffic, detect discrepancies, and finally make the proper entries as to mileage and demurrage in the accounts of the respective companies. Frequently the charge of one-tenth of a penny per mile for a tarpaulin is divided among several companies in various proportions. For a waggon or carriage from Edinburgh to London, mileage and demurrage accounts are sent out by the Clearing-House to four companies. Formerly, before demurrage was introduced, carriages were frequently detained on lines to which they did not belong, for weeks, and even months, until sometimes they were lost sight of altogether!

Once a month the balances are struck, and the various railways, instead of having to pay enormous sums to each other, obtain settlement by means of comparatively small balances.